Can I search for a better mortgage offer?

SammyOK

Briefly, I'm a first time buyer likely to complete on the last of July. My brokers got me a mortgage offer from Virgin (2.59%, £990 product free 2 year fix based on 85% LTV on a 280K house) back in early April and my solicitors have completed all the necessary financial checks pending exchange and completion. However over the last two months I can see that rates have dropped quite remarkably. So my question are:

 1. Can I ask my brokers to do another search for a better offer from Virgin or another company despite already having an offer to hand?

 2. I understand that a mortgage application is a major credit check and the advise is to avoid too many of these in a short period. So, having already had one for the original Virgin offer in April, is it advisable to try again? My circumstances haven't changed. I've not missed a single payment in life and my finances are all in order.

 3. Assuming, my broker tried a different company and they refused my application based on their lending criteria, is there a chance Virgin will also rescind the existing offer?

Thanks so much!

getmore4less

why not look yourself first to see what sort of saving there might be, changing introduces  risk of a delay.

virgin look like around 2.33% id th cuurent low rate at 85% 2y fix

over 2 years on a 30y full term

amount	rate	payment	owing
£238,000.00	2.59%	£951.56	£227,225.89
£238,000.00	2.33%	£951.56	£225,987.24

£1,200 saving if they let you take the new product with no extra fees


There are cheaper lenders so why did they recommend  Virgin? that may influence alternatives

[Deleted User]

Virgin's credit decision system is linked to its products so they dont allow you just to change the product on a whim.  It would be a whole new mortgage application with new underwriting and probably a good few weeks delay.    If you have the capacity for an extra month say of time then by all means ask for the market to be searched again.   
Only you can decide if its worth the risk, if you go to a new lender then the Virgin one will still remain in place so risk is low there, if you submit a new case with Virgin i think they have to close the old one (but im not certain).  If thats the case it will obviously leave you a bit exposed

SammyOK

getmore4less said:

why not look yourself first to see what sort of saving there might be, changing introduces  risk of a delay.

virgin look like around 2.33% id th cuurent low rate at 85% 2y fix

over 2 years on a 30y full term

amount	rate	payment	owing
£238,000.00	2.59%	£951.56	£227,225.89
£238,000.00	2.33%	£951.56	£225,987.24

£1,200 saving if they let you take the new product with no extra fees


There are cheaper lenders so why did they recommend  Virgin? that may influence alternatives

Thanks so much. I think Virgin's offer was the most suitable back in March when we were searching. You make a good point about the delay though. I've not factored in the new lender's survey, possible charges etc etc. Hmmm decisions decisions. I'll run a check on the MSE mortgage comparison tool now to see what's possible. 

SammyOK

Deleted_User said:

Virgin's credit decision system is linked to its products so they dont allow you just to change the product on a whim.  It would be a whole new mortgage application with new underwriting and probably a good few weeks delay.    If you have the capacity for an extra month say of time then by all means ask for the market to be searched again.   
Only you can decide if its worth the risk, if you go to a new lender then the Virgin one will still remain in place so risk is low there, if you submit a new case with Virgin i think they have to close the old one (but im not certain).  If thats the case it will obviously leave you a bit exposed

Cheers. This is really helpful insight. I do have about a month left before completion so I'll speak with the brokers about trying with a different lender based on what I can find from the mortgage comparison tool or what the brokers can also find.